If Interest Rate Parity Holds, and the International Fisher Effect

question 15

True/False

If interest rate parity holds, and the international Fisher effect (IFE) holds, foreign currencies with relatively high interest rates should have forward discounts, and those currencies would be expected to depreciate.

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Customer's Point

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Assumptive Close

A sales technique in which the salesperson assumes that the customer has already decided to purchase and moves forward with steps to complete the sale.

Prospect

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